The BUX Index Rose This Week

The Budapest Stock Exchange (BSE) share index, the BUX, rose by 1.82%, or 1,022.67 points, to 57,337.64 points compared to the close of last week, MTI reported this week along with a brief analysis of the week’s trading.

Total turnover fell from HUF 35.849 billion to HUF 29.234 billion, but this week the BSE held only four trading days due to the Wednesday working holiday.

The previous week's weakness continued on Monday, with turnover falling short of HUF 5 billion and the BUX barely rising, even falling on Tuesday. The decline was largely due to the unfavorable international investor sentiment.

The stock market outlook improved during the trading break on Wednesday, when analysts predicted the end of the US interest rate hike cycle based on the US Federal Reserve's interest rate decision meeting, Equilor analyst Zoltán Varga wrote in his weekly summary sent to MTI.

On Thursday, shareholders of Richter also received good news, as one of the drugmaker's products will be approved by the European Commission for use in a wider range of areas than before. Its shares gained more than two% on the announcement, while the BUX rose almost one%.

Trading was also good on Friday, as was international sentiment, as fresh US labor market data again reduced the chances of an interest rate hike. Zoltán Varga believes that the BUX could reach the 58,000-point level in the near term if the favorable conditions remain.   

Magyar Telekom gained the most this week. Its share price rose 5.37%, by HUF 30 to HUF 589 on weekly turnover of HUF 824.2 billion.

Richter strengthened by 2.85%, HUF 245, to close at HUF 8,845 on Friday, with weekly turnover of HUF 7.577 billion.

OTP rose 1.74% this week, up HUF 235 to HUF 13,765 on turnover of HUF 15.514 billion.

The price of Mol rose by 0.9% by HUF 26 compared to last week's close, closing at HUF 2,900 on Friday, with a weekly turnover of over HUF 2.812 billion.

The BUMIX index of small and medium-sized shares ended the week up 0.46%, 22.58 points at 4,967.86.